The Siam Commercial Bank Public Company Limited and its Subsidiaries

The Siam Commercial Bank Public Company Limited and its Subsidiaries Interim financial statements for the three-month and nine-month periods ended 30 September 2017 and Independent auditor s report on review of interim financial information

Independent Auditor s Report on Review of Interim Financial Information To the Board of Directors of The Siam Commercial Bank Public Company Limited I have reviewed the accompanying consolidated and the Bank s statements of financial position of The Siam Commercial Bank Public Company Limited and its subsidiaries, and of The Siam Commercial Bank Public Company Limited, respectively, as at 30 September 2017; the consolidated and the Bank s statements of profit or loss and other comprehensive income for the three-month and nine-month periods ended 30 September 2017, changes in equity and cash flows for the nine-month period ended 30 September 2017 and condensed notes ( interim financial information ). Management is responsible for the preparation and presentation of this interim financial information in accordance with Thai Accounting Standard 34, Interim Financial Reporting. My responsibility is to express a conclusion on this interim financial information based on my review. Scope of Review I conducted my review in accordance with Thai Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion. Conclusion Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34, Interim Financial Reporting. (Winid Silamongkol) Certified Public Accountant Registration No. 3378 KPMG Phoomchai Audit Ltd. Bangkok 9 November 2017

Statement of financial position 30 September 31 December 30 September 31 December Assets Note 2017 2016 2017 2016 (Unaudited) (Unaudited) (in thousand Baht) Cash 34,520,518 40,488,512 34,316,440 40,317,033 Interbank and money market items, net 315,170,809 257,256,079 302,051,438 243,901,504 Derivatives assets 45,171,634 58,590,670 45,399,515 59,634,746 Investments, net 5 543,545,353 590,586,901 284,880,659 363,076,332 Investments in subsidiaries and associate, net 6-333,702 17,434,326 16,741,514 Loans to customers and accrued interest receivables, net 7 Loans to customers 2,018,452,066 1,962,604,955 2,005,303,785 1,950,822,291 Accrued interest receivables 3,568,633 4,128,530 3,091,477 3,504,906 Total loans to customers and accrued interest receivables 2,022,020,699 1,966,733,485 2,008,395,262 1,954,327,197 Less deferred revenue (24,887,002) (23,557,162) (24,887,002) (23,557,162) Less allowance for doubtful accounts 7.5 (81,302,302) (73,353,575) (80,530,398) (72,624,446) Less revaluation allowance for debt restructuring 8 (4,296,357) (4,003,522) (4,296,357) (4,003,522) Total loans to customers and accrued interest receivables, net 1,911,535,038 1,865,819,226 1,898,681,505 1,854,142,067 Properties for sale, net 11,213,712 11,604,427 11,210,169 11,599,777 Premises and equipment, net 41,482,452 40,887,724 40,240,614 39,647,293 Goodwill and other intangible assets, net 15,881,946 13,514,334 6,572,916 4,264,935 Assets pending transfer 2,504,724 2,370,538 2,571,110 2,442,140 Deferred tax assets 74,463 410,314 7,684 7,758 Other assets, net 27,319,409 31,125,417 18,250,877 25,631,231 Total assets 2,948,420,058 2,912,987,844 2,661,617,253 2,661,406,330 The accompanying notes are an integral part of these financial statements. 2

Statement of financial position 30 September 31 December 30 September 31 December Liabilities and shareholders equity Note 2017 2016 2017 2016 (Unaudited) (Unaudited) (in thousand Baht) Liabilities Deposits 2,026,796,830 2,026,272,115 2,023,175,667 2,021,453,602 Interbank and money market items 150,589,910 100,953,159 153,617,677 103,778,925 Liability payable on demand 14,385,193 10,526,319 14,367,967 10,521,749 Liabilities to deliver security 51,761 50,594 - - Derivatives liabilities 42,277,377 54,192,365 42,108,150 54,138,466 Debt issued and borrowings 60,325,027 106,837,890 59,320,956 106,652,606 Provisions 7,842,463 7,461,771 7,468,046 7,116,836 Liabilities under insurance contracts 9 242,424,588 216,994,447 - - Liabilities pending transfer 11,366,864 13,471,154 11,312,729 13,428,370 Deferred tax liabilities 2,479,606 2,327,820 1,477,879 2,186,016 Other liabilities 35,187,516 39,601,988 28,119,145 32,935,499 Total liabilities 2,593,727,135 2,578,689,622 2,340,968,216 2,352,212,069 Shareholders equity Share capital Authorised share capital 3,583,825,728 preferred shares of Baht 10 each 35,838,257 35,838,257 35,838,257 35,838,257 3,416,174,272 common shares of Baht 10 each 34,161,743 34,161,743 34,161,743 34,161,743 Issued and paid-up share capital 3,791,642 preference shares of Baht 10 each 37,916 38,903 37,916 38,903 3,395,400,556 common shares of Baht 10 each 33,954,006 33,953,019 33,954,006 33,953,019 Premium on share capital Premium on preferred shares 14,827 15,213 14,827 15,213 Premium on common shares 11,109,364 11,108,978 11,109,364 11,108,978 Other reserves 20,192,451 15,342,084 18,693,290 18,312,436 Retained earnings Appropriated Legal reserve 7,000,000 7,000,000 7,000,000 7,000,000 Unappropriated 282,094,695 266,630,575 249,839,634 238,765,712 Total owners of the company 354,403,259 334,088,772 320,649,037 309,194,261 Non-controlling interests 289,664 209,450 - - Total shareholders equity 354,692,923 334,298,222 320,649,037 309,194,261 Total liabilities and shareholders equity 2,948,420,058 2,912,987,844 2,661,617,253 2,661,406,330 (Mr. Arthid Nanthawithaya) President and Chief Executive Officer The accompanying notes are an integral part of these financial statements. 3

Statement of profit or loss and other comprehensive income (Unaudited) Three month period ended Three month period ended 30 September 30 September Note 2017 2016 2017 2016 (in thousand Baht) Interest income 31,513,449 30,421,886 29,108,091 28,332,835 Interest expenses 8,240,967 8,207,446 8,231,186 8,198,728 Net interest income 23,272,482 22,214,440 20,876,905 20,134,107 Fees and service income 9,457,171 9,115,586 9,654,193 9,525,797 Fees and service expenses 1,577,301 1,493,611 1,292,188 1,201,397 Net fees and service income 7,879,870 7,621,975 8,362,005 8,324,400 Gains on trading 1,867,583 1,719,900 1,735,305 1,666,967 Gains on investments 565,872 1,072,907 284,651 268,183 Share of loss from investment for using equity method - (2,898) - - Dividend income 272,426 283,442 423,667 520,876 Net earned insurance premiums 12,686,669 13,203,042 - - Other operating income 87,128 100,934 14,329 22,528 Total operating income 46,632,030 46,213,742 31,696,862 30,937,061 Net insurance claims 11,940,122 12,024,528 - - Net operating income 34,691,908 34,189,214 31,696,862 30,937,061 Other operating expenses Employee s expenses 6,852,348 6,303,141 6,055,804 5,590,102 Directors remuneration 25,530 26,648 24,380 24,888 Premises and equipment expenses 2,931,842 2,667,139 2,712,755 2,470,989 Taxes and duties 1,090,292 1,084,240 1,011,290 1,012,638 Others 3,621,500 2,673,818 4,164,010 3,227,908 Total operating expenses 14,521,512 12,754,986 13,968,239 12,326,525 Impairment loss on loans and debt securities 7,554,460 7,011,657 7,510,000 7,010,000 Profit from operating before income tax expense 12,615,936 14,422,571 10,218,623 11,600,536 Income tax expenses 17 2,472,397 2,872,270 1,932,510 2,215,884 Net profit 10,143,539 11,550,301 8,286,113 9,384,652 The accompanying notes are an integral part of these financial statements. 4

Statement of profit or loss and other comprehensive income (Unaudited) Three month period ended Three month period ended 30 September 30 September Note 2017 2016 2017 2016 (in thousand Baht) Other comprehensive income (loss) Items that will be reclassified subsequently to profit or loss Gains (Losses) on remeasuring available-for-sale investments 3,221,121 (1,271,704) 276,996 (396,952) Losses arising from translating the financial statements of a foreign operation (38,750) (27,288) - - Changes in hedge reserve 173,527 (106,886) - - Income tax relating to components of other comprehensive (loss) income will be reclassified subsequently to profit or loss (678,930) 275,718 (55,399) 79,391 Total other comprehensive income (loss), net of income tax 2,676,968 (1,130,160) 221,597 (317,561) Total comprehensive income 12,820,507 10,420,141 8,507,710 9,067,091 Net profit attributable to: Owners of the company 10,130,221 11,532,896 8,286,113 9,384,652 Non-controlling interests 13,318 17,405 - - Total comprehensive income attributable to: Owners of the company 12,786,510 10,409,248 8,507,710 9,067,091 Non-controlling interests 33,997 10,893 - - Earnings per share of parent company Basic earnings per share (in Baht) 18 2.98 3.40 2.44 2.76 (Mr. Arthid Nanthawithaya) President and Chief Executive Officer The accompanying notes are an integral part of these financial statements. 5

Statement of profit or loss and other comprehensive income (Unaudited) Nine month period ended Nine month period ended 30 September 30 September Note 2017 2016 2017 2016 (in thousand Baht) Interest income 93,453,966 91,112,052 86,503,345 85,006,310 Interest expenses 24,832,537 25,466,594 24,811,677 25,450,182 Net interest income 68,621,429 65,645,458 61,691,668 59,556,128 Fees and service income 27,105,369 25,796,594 27,894,182 27,767,724 Fees and service expenses 4,791,493 4,520,139 3,907,180 3,721,296 Net fees and service income 22,313,876 21,276,455 23,987,002 24,046,428 Gains on trading 5,315,831 4,778,325 5,081,622 4,746,321 Gains on investments 987,602 2,439,080 496,282 1,263,143 Share of loss from investment for using equity method (8,949) (6,358) - - Dividend income 870,084 959,943 2,474,294 3,043,033 Net earned insurance premiums 39,615,519 42,267,842 - - Other operating income 867,064 341,083 627,204 73,720 Total operating income 138,582,456 137,701,828 94,358,072 92,728,773 Net insurance claims 36,725,130 36,968,668 - - Net operating income 101,857,326 100,733,160 94,358,072 92,728,773 Other operating expenses Employee s expenses 20,730,757 18,354,932 18,384,535 16,198,402 Directors remuneration 72,760 71,517 67,205 66,042 Premises and equipment expenses 8,497,980 7,830,175 7,903,842 7,256,173 Taxes and duties 3,256,690 3,209,183 3,038,610 3,013,123 Others 9,682,330 7,338,527 11,428,949 8,824,942 Total operating expenses 42,240,517 36,804,334 40,823,141 35,358,682 Impairment loss on loans and debt securities 17,574,786 20,533,977 17,530,000 20,530,000 Profit from operating before income tax expense 42,042,023 43,394,849 36,004,931 36,840,091 Income tax expenses 17 8,047,407 8,447,726 6,439,719 6,589,905 Net profit 33,994,616 34,947,123 29,565,212 30,250,186 The accompanying notes are an integral part of these financial statements. 6

Statement of profit or loss and other comprehensive income (Unaudited) Nine month period ended Nine month period ended 30 September 30 September Note 2017 2016 2017 2016 (in thousand Baht) Other comprehensive income (loss) Items that will be reclassified subsequently to profit or loss Gains on remeasuring available-for-sale investments 6,292,253 2,838,375 680,189 185,288 Losses arising from translating the financial statements of a foreign operation (154,777) (88,349) - - Share of other comprehensive income (loss) of associate (using equity method) 72 (22,820) - - Changes in hedge reserve 270,681 (309,336) 51,212 3 Income tax relating to components of other comprehensive loss will be reclassified subsequently to profit or loss (1,312,587) (503,013) (146,280) (37,058) 5,095,642 1,914,857 585,121 148,233 Items that will not be reclassified subsequently to profit or loss Changes in revaluation surplus - (53,058) - (53,058) Income tax relating to components of other comprehensive income will not be reclassified subsequently to profit or loss - 10,612-10,612 - (42,446) - (42,446) Total other comprehensive income, net of income tax 5,095,642 1,872,411 585,121 105,787 Total comprehensive income 39,090,258 36,819,534 30,150,333 30,355,973 Net profit attributable to: Owners of the company 33,953,080 34,896,704 29,565,212 30,250,186 Non-controlling interests 41,536 50,419 - - Total comprehensive income attributable to: Owners of the company 39,010,044 36,753,679 30,150,333 30,355,973 Non-controlling interests 80,214 65,855 - - Earnings per share of parent company Basic earnings per share (in Baht) 18 9.99 10.27 8.70 8.90 (Mr. Arthid Nanthawithaya) President and Chief Executive Officer The accompanying notes are an integral part of these financial statements. 7

Statement of changes in equity (Unaudited) Other reserves Losses arising Issued and Premium on Gains on from translating Share of other paid-up share capital share capital remeasuring the financial comprehensive Changes in Total Retained earnings Total Non- Total Preferred Common Preferred Common available-for-sale statements of a (loss) income of Changes in revaluation other Legal owners of controlling shareholders Note shares shares shares shares investments foreign operation associate hedge reserve surplus reserves reserve Unappropriated the company interests equity Nine month period ended 30 September 2017 Balance at 1 January 2017 38,903 33,953,019 15,213 11,108,978 1,186,362 (125,943) (2,364,279) (in thousand Baht) 40,608 16,605,336 15,342,084 7,000,000 266,630,575 334,088,772 209,450 334,298,222 Dividend paid 10 - - - - - - - - - - - (18,695,557) (18,695,557) - (18,695,557) Conversion of preference shares to common shares (987) 987 (386) 386 - - - - - - - - - - - Net profit - - - - - - - - - - - 33,953,080 33,953,080 41,536 33,994,616 Other comprehensive income (loss) - - - - 4,996,580 (154,777) 72 215,089-5,056,964 - - 5,056,964 38,678 5,095,642 Total comprehensive income (loss) - - - - 4,996,580 (154,777) 72 215,089-5,056,964-33,953,080 39,010,044 80,214 39,090,258 Transfer to retained earnings - - - - - - - - (206,597) (206,597) - 206,597 - - - Balance at 30 September 2017 37,916 33,954,006 14,827 11,109,364 6,182,942 (280,720) (2,364,207) 255,697 16,398,739 20,192,451 7,000,000 282,094,695 354,403,259 289,664 354,692,923 The accompanying notes are an integral part of these financial statements. 8

Statement of changes in equity (Unaudited) Other reserves Losses arising Issued and Premium on Gains on from translating Share of other paid-up share capital share capital remeasuring the financial comprehensive Changes in Total Retained earnings Total Non- Total Preferred Common Preferred Common available-for-sale statements of a loss of Changes in revaluation other Legal owners of controlling shareholders Note shares shares shares shares investments foreign operation associate hedge reserve surplus reserves reserve Unappropriated the company interests equity Nine month period ended 30 September 2016 Balance at 1 January 2016 47,033 33,944,889 18,392 11,105,799 3,279,867 (102,523) (2,341,459) (in thousand Baht) 149,046 16,941,148 17,926,079 7,000,000 237,420,539 307,462,731 230,303 307,693,034 Dividend paid 10 - - - - - - - - - - - (18,695,557) (18,695,557) (8,883) (18,704,440) Conversion of preferred shares to common shares (7,607) 7,607 (2,975) 2,975 - - - - - - - - - - - Acquisitions of non-controlling interests without a change in control - - - - - - - - - - - - - (51,780) (51,780) Net profit - - - - - - - - - - - 34,896,704 34,896,704 50,419 34,947,123 Other comprehensive income (loss) - - - - 2,256,007 (88,349) (22,820) (245,417) (42,446) 1,856,975 - - 1,856,975 15,436 1,872,411 Total comprehensive income (loss) - - - - 2,256,007 (88,349) (22,820) (245,417) (42,446) 1,856,975-34,896,704 36,753,679 65,855 36,819,534 Transfer to retained earnings - - - - - - - - (223,940) (223,940) - 223,940 - - - Balance at 30 September 2016 39,426 33,952,496 15,417 11,108,774 5,535,874 (190,872) (2,364,279) (96,371) 16,674,762 19,559,114 7,000,000 253,845,626 325,520,853 235,495 325,756,348 The accompanying notes are an integral part of these financial statements. 9

Statement of changes in equity (Unaudited) Other reserves Issued and paid-up share capital Premium on share capital Gains on remeasuring Changes in Total Retained earnings Total Preferred Common Preferred Common available-for-sale Changes in revaluation other Legal shareholders Note shares shares shares shares investments hedge reserve surplus reserves reserve Unappropriated equity Nine month period ended 30 September 2017 Balance at 1 January 2017 38,903 33,953,019 15,213 11,108,978 2,325,667 (in thousand Baht) (40,970) 16,027,739 18,312,436 7,000,000 238,765,712 309,194,261 Dividend paid 10 - - - - - - - - - (18,695,557) (18,695,557) Conversion of preferred shares to common shares (987) 987 (386) 386 - - - - - - - Net profit - - - - - - - - - 29,565,212 29,565,212 Other comprehensive income - - - - 544,151 40,970-585,121 - - 585,121 Total comprehensive income - - - - 544,151 40,970-585,121-29,565,212 30,150,333 Transfer to retained earnings - - - - - - (204,267) (204,267) - 204,267 - Balance at 30 September 2017 37,916 33,954,006 14,827 11,109,364 2,869,818-15,823,472 18,693,290 7,000,000 249,839,634 320,649,037 The accompanying notes are an integral part of these financial statements. 10

Statement of changes in equity (Unaudited) Other reserves Issued and paid-up share capital Premium on share capital Gains on remeasuring Changes in Total Retained earnings Total Preferred Common Preferred Common available-for-sale Changes in revaluation other Legal shareholders Note shares shares shares shares investments hedge reserve surplus reserves reserve Unappropriated equity Nine month period ended 30 September 2016 Balance at 1 January 2016 47,033 33,944,889 18,392 11,105,799 2,422,935 (in thousand Baht) - 16,360,445 18,783,380 7,000,000 215,005,964 285,905,457 Dividend paid 10 - - - - - - - - - (18,695,557) (18,695,557) Conversion of preferred shares to common shares (7,607) 7,607 (2,975) 2,975 - - - - - - - Net profit - - - - - - - - - 30,250,186 30,250,186 Other comprehensive income (loss) - - - - 148,231 2 (42,446) 105,787 - - 105,787 Total comprehensive income (loss) - - - - 148,231 2 (42,446) 105,787-30,250,186 30,355,973 Transfer to retained earnings - - - - - - (221,611) (221,611) - 221,611 - Balance at 30 September 2016 39,426 33,952,496 15,417 11,108,774 2,571,166 2 16,096,388 18,667,556 7,000,000 226,782,204 297,565,873 (Mr. Arthid Nanthawithaya) President and Chief Executive Officer The accompanying notes are an integral part of these financial statements. 11

Statement of cash flows (Unaudited) Nine month period ended Nine month period ended 30 September 30 September 2017 2016 2017 2016 (in thousand Baht) Cash flows from operating activities Profit from operating before income tax expense 42,042,023 43,394,849 36,004,931 36,840,091 Adjustments to reconcile profit from operating before income tax expense to cash receipts (payments) from operating activities Depreciation and amortisation 2,286,900 2,030,856 2,165,586 1,894,989 Impairment loss on loans and debt securities 19,354,854 22,004,220 19,310,069 22,000,242 Losses on impairment of properties for sale 15,108 70,460 14,000 70,460 Gains on sale of premises and equipment (19,629) (153,807) (16,575) (140,854) Losses (gains) on trading 775,461 (1,136,254) 792,332 (1,660,989) Gains on investments (987,602) (2,439,080) (496,282) (1,263,143) Share of loss from investment for using equity method 8,949 6,358 - - 63,476,064 63,777,602 57,774,061 57,740,796 Net interest income (68,621,429) (65,645,458) (61,691,668) (59,556,128) Dividend income (870,084) (959,943) (2,474,294) (3,043,033) Proceeds from interest 93,745,780 91,214,204 87,572,663 85,532,388 Interest paid (26,164,292) (27,797,011) (26,133,660) (27,785,886) Proceeds from dividend 877,058 954,585 1,647,482 3,036,514 Income tax paid (10,757,886) (11,772,713) (8,585,225) (9,696,781) Profit from operating before changes in operating assets and liabilities 51,685,211 49,771,266 48,109,359 46,227,870 (Increase) decrease in operating assets Interbank and money market items (57,792,300) 31,737 (58,096,748) (1,550,438) Derivatives assets 8,846,019 (117,377) 10,201,001 755,288 Investment in securities for trading 8,497,207 (16,235,349) 10,639,055 (14,743,775) Loans to customers (71,669,339) (93,243,318) (70,301,711) (93,326,050) Properties for sale 6,399,261 6,233,159 6,399,261 6,230,609 Other assets 5,215,910 3,211,563 7,195,610 8,353,111 Increase (decrease) in operating liabilities Deposits 524,715 (3,439,001) 1,722,065 (2,225,396) Interbank and money market items 49,636,751 590,798 49,838,752 961,170 Liability payable on demand 3,858,874 2,326,238 3,846,218 2,329,313 Liabilities to deliver security 1,167 45,475 - - Derivatives liabilities (10,657,759) (5,373,177) (12,140,443) (5,936,888) Short-term debt issued and borrowings (38,835,163) 732,178 (39,653,951) 310,348 Liabilities under insurance contracts 25,430,141 26,206,577 - - Other liabilities (3,294,519) 5,819,920 (4,005,595) 4,340,297 Net cash used in operating activities (22,153,824) (23,439,311) (46,247,127) (48,274,541) The accompanying notes are an integral part of these financial statements. 12

Statement of cash flows (Unaudited) Nine month period ended Nine month period ended 30 September 30 September 2017 2016 2017 2016 (in thousand Baht) Cash flows from investing activities Acquisition of available-for-sale securities (428,363,333) (384,079,910) (327,094,924) (294,724,569) Proceeds from sale of available-for-sale securities 471,099,699 412,212,796 395,015,899 349,675,193 Acquisition of held-to-maturity securities (264,600) (8,801,641) (264,600) (280,400) Proceeds from redemption of held-to-maturity securities 2,915,928 19,450,545 1,470,900 1,003,200 Acquisition of general securities (139,234) (753,507) (139,234) (753,507) Proceeds from sale of general securities 30,208 13,791 30,208 13,791 Acquisition of investments in subsidiaries and/or associate - - (7,000) (100,000) Proceeds from decrease in capital of subsidiary - - - 8,442,471 Acquisition of premises and equipment (2,360,818) (1,241,675) (2,291,828) (1,198,606) Proceeds from sale of premises and equipment 46,771 271,747 41,818 232,916 Acquisition of intangible assets (2,874,125) (742,852) (2,764,816) (1,172,006) Net cash from investing activities 40,090,496 36,329,294 63,996,423 61,138,483 Cash flows from financing activities Repayment from long-term debt issued (20,000,000) - (20,000,000) - Proceeds from long-term debt issued 14,833,464-14,833,464 - Proceeds from long-term borrowings 112,204-112,204 - Dividend paid to equity holders of the Bank (18,695,557) (18,695,557) (18,695,557) (18,695,557) Dividend paid to non-controlling interests - (8,883) - - Net cash used in financing activities (23,749,889) (18,704,440) (23,749,889) (18,695,557) Losses arising from translating the financial statements of a foreign operation (154,777) (88,349) - - Net decrease in cash (5,967,994) (5,902,806) (6,000,593) (5,831,615) Cash at 1 January 40,488,512 38,979,295 40,317,033 38,737,313 Cash at 30 September 34,520,518 33,076,489 34,316,440 32,905,698 Supplementary disclosures of cash flow information Significant non-cash items were as follows: Gains on remeasuring available-for-sale investments 6,292,253 2,838,375 680,189 185,288 Losses arising from translating the financial statements of a foreign operation (154,777) (88,349) - - Share of other comprehensive income (loss) of associate (using equity method) 72 (22,820) - - Changes in hedge reserve 270,681 (309,336) 51,212 3 Changes in revaluation surplus - (53,058) - (53,058) Properties for sale from loan payment 6,023,653 7,067,152 6,023,653 7,067,152 (Mr. Arthid Nanthawithaya) President and Chief Executive Officer The accompanying notes are an integral part of these financial statements. 13

Note Contents Pages 1 General information 15 2 Basis of preparation of the interim financial statements 15 3 Fair value of assets and liabilities 16 4 Maintenance of capital fund 20 5 Investments, net 22 6 Investments in subsidiaries and associate, net 23 7 Loans to customers and accrued interest receivables, net 25 8 Troubled debt restructuring 31 9 Liabilities under insurance contracts 32 10 Dividends 33 11 Assets pledged as collateral and under restriction 33 12 Contingencies 34 13 Related parties 34 14 Key management personnel compensation 38 15 Operating segments 38 16 The financial position and results of operations classified by domestic and foreign business 40 17 Income tax expenses 42 18 Basic earnings per share 42 19 Events after the reporting period 42 20 Thai Financial Reporting Standards (TFRS) not yet adopted 42 14

These notes form an integral part of the interim financial statements. The interim financial statements issued for Thai regulatory reporting purposes are prepared in the Thai language. These English language financial statements have been prepared from and are consistent with the Thai language financial statements, and both the English and Thai language financial statements were approved and authorised for issue by the directors on 9 November 2017. 1 General information The Siam Commercial Bank Public Company Limited, the Bank, is incorporated in Thailand and has its registered office at 9 Rutchadapisek Road, Jatujak, Bangkok. was established by Royal Charter on 30 January 1906 and was listed on the Stock Exchange of Thailand on 6 February 1976. The principal business of the Bank is the provision of financial products and services through its Head Office and branch network in Thailand, its branches in Singapore, Hong Kong, Laos, Vietnam, and Cayman Islands and its subsidiaries in Thailand and Cambodia. also has a sizeable investment in its life insurance subsidiary. Details of the Bank s subsidiaries as at 30 September 2017 and 31 December 2016 are given in note 6. 2 Basis of preparation of the interim financial statements (a) Statement of compliance The interim financial statements are prepared on a condensed basis in accordance with Thai Accounting Standard (TAS) No.34 (revised 2016) Interim Financial Reporting; guidelines promulgated by the Federation of Accounting Professions (FAP); and applicable rules and regulations of the Thai Securities and Exchange Commission; and presented as prescribed by the Bank of Thailand (BoT) notification number Sor Nor Sor 21/2558, directive dated 4 December 2015, regarding The preparation and announcement of the financial statements of commercial banks and holding companies which are the parent company of a group of companies offering financial services. The interim financial statements are prepared to provide an update on the financial statements for the year ended 31 December 2016 and for the six-month period ended 30 June 2017. They do not include all of the financial information required for full annual financial statements but focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim financial statements should be read in conjunction with the financial statements of the Bank and its subsidiaries for the year ended 31 December 2016 and for the six-month period ended 30 June 2017. The accounting policies and methods of computation applied in these interim financial statements are consistent with those applied in the financial statements for the year ended 31 December 2016 except that the Bank and its subsidiaries have adopted all revised TFRS that are effective for annual periods beginning on or after 1 January 2017. The adoption of these revised TFRS did not have any material effect on the accounting policies, methods of computation, financial performance or position of the Bank and its subsidiaries. In addition to the above revised TFRS, the FAP has issued a number of other revised TFRS which are effective for annual financial periods beginning on or after 1 January 2018 and have not been adopted in the preparation of these interim financial statements. Those revised TFRS that are relevant to the Bank and its subsidiaries operations are disclosed in note 20. 15

(b) Functional and presentation currency The interim financial statements are presented in Thai Baht, which is the Bank and its subsidiaries functional currency. All financial information presented in Thai Baht has been rounded in the notes to the financial statements to the nearest million unless otherwise stated. (c) Use of judgments and estimates The preparation of interim financial statements in conformity with TFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgments made by management in applying the Bank and its subsidiaries accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2016. (d) Basis of preparation of the consolidated financial statements The consolidated financial statements include the accounts of the Head Office, all domestic and overseas branches and the Bank s subsidiaries. All inter-company transactions and balances within this Group have been eliminated. 3 Fair value of assets and liabilities and its subsidiaries have an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including level 3 fair values, and reports through to the chief financial officer. The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion these valuations meet the requirements of TFRS, including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation issues are reported to the Bank and its subsidiaries Audit Committee. When measuring the fair value of an asset or a liability, the Bank and its subsidiaries use market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. 16

and its subsidiaries recognised transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. There were no transfers between levels of the fair value hierarchy during the nine-month period ended 30 September 2017. Carrying amounts and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. 3.1 Financial instruments measured at fair value The fair value of financial instruments measured at fair value in the consolidated and the Bank statement of financial position were as follows: Fair value Fair value Level 1 Level 2 Total Level 1 Level 2 Total 30 September 2017 Financial assets Derivatives assets - Foreign exchange rate - 26,391 26,391-26,465 26,465 - Interest rate - 17,269 17,269-17,103 17,103 - Others - 254 254-574 574 Total - 43,914 43,914-44,142 44,142 Investments - Trading securities 3,774 18,157 21,931-18,138 18,138 - Available-for-sale securities 23,376 377,730 401,106 8,055 245,675 253,730 Total 27,150 395,887 423,037 8,055 263,813 271,868 Total financial assets 27,150 439,801 466,951 8,055 307,955 316,010 Financial liabilities Derivatives liabilities - Foreign exchange rate - 25,528 25,528-25,567 25,567 - Interest rate - 15,719 15,719-15,715 15,715 - Others 190 549 739-535 535 Total financial liabilities 190 41,796 41,986-41,817 41,817 Fair value Fair value Level 1 Level 2 Total Level 1 Level 2 Total 31 December 2016 Financial assets Derivatives assets - Foreign exchange rate - 36,637 36,637-37,372 37,372 - Interest rate - 19,056 19,056-19,056 19,056 - Others - 47 47-356 356 Total - 55,740 55,740-56,784 56,784 17

Fair value Fair value Level 1 Level 2 Total Level 1 Level 2 Total Investments - Trading securities 1,561 27,315 28,876-27,292 27,292 - Available-for-sale securities 23,354 415,119 438,473 7,882 313,920 321,802 Total 24,915 442,434 467,349 7,882 341,212 349,094 Total financial assets 24,915 498,174 523,089 7,882 397,996 405,878 Financial liabilities Derivatives liabilities - Foreign exchange rate - 37,520 37,520-37,485 37,485 - Interest rate - 15,675 15,675-15,675 15,675 - Others 59 244 303-284 284 Total financial liabilities 59 53,439 53,498-53,444 53,444 and its subsidiaries determine Level 2 fair values for debt securities using quoted market prices for identical or similar instruments in inactive markets or other inputs that are observable market data. Level 2 fair values for over-the-counter derivative financial instruments are derived using broker quotes in active markets. Fair values reflect the credit risk of the counterparty. 3.2 Financial instruments not measured at fair value Fair value hierarchy of financial instruments which are not measured at fair value and for which there is a significant difference with carrying amount as of 30 September 2017 and 31 December 2016 were as follows: Carrying Fair value Carrying Fair value amount Level 2 amount Level 2 30 September 2017 Financial assets Derivatives assets 1,258 1,357 1,258 1,357 Held-to-maturity securities 119,169 133,696 11,678 12,853 Financial liabilities Derivatives liabilities 291 234 291 234 Carrying Fair value Carrying Fair value amount Level 2 amount Level 2 31 December 2016 Financial assets Derivatives assets 2,851 2,984 2,851 2,984 Held-to-maturity securities 122,166 133,768 12,915 13,998 Financial liabilities Derivatives liabilities 694 651 694 651 18

The following methods and assumptions are used by the Bank in estimating fair market values of financial instruments as disclosed herein: Interbank and money market items (Assets): Derivatives: Investments: Loans to customers and accrued interest receivables: Deposits and interbank and money market items (Liabilities): Liabilities payable on demand: Fair value calculated based on present value of estimated cash flows, using the current interest rate in the money market. The fair values of derivatives are obtained from quoted market prices in active markets. Fair values of derivatives in an illiquid market are obtained using an average price (quoted from several reliable sources), valuation technique and a benchmark price of instruments which have similar characteristics, as appropriate. The following methodologies are used to determine the fair value of securities held by the Bank. - The fair value of debt securities is estimated based on the Thai Bond Market Association s last average bid price. In situations where no auction prices are available, the fair value is estimated based on the last executed price. For debt securities with no active market price, the fair value is estimated based on the yield curve of debt securities plus a risk premium. - The bidding prices at The Stock Exchange of Thailand on the last business day of the period are used to estimate the fair value of listed private sector equity securities and listed unit trust. - The fair value of non-listed unit trusts is estimated based on the net asset value at the reporting date. - The fair value of foreign debt and equity securities listed on foreign stock exchanges is estimated by using the bid prices at such exchanges as of the last business day of the period. The fair value of non-listed foreign debt and equity securities is determined based on values quoted by reliable international financial institutions. - For variable-rate loans that are repriced frequently and have no significant change in credit risk, fair values are based on carrying amount. - Fair values of other loans are estimated using discounted cash flow analyses, using market interest rates or the fair value of collateral. There is no significant difference with the carrying amount - The carrying amount disclosed for deposits which are payable on demand by the depositor, are equal to the fair value of such deposits. - Fair values for fixed-deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar deposits. - The carrying amount of interbank and money market items approximates their fair value. The carrying amount of liabilities payable on demand approximates fair value. 19

Debt issued and borrowings: - The carrying amounts of short-term borrowings maturing within 90 days approximate their fair values. - Fair values of other borrowings are estimated using discounted cash flow analyses based on the Bank s current borrowing rates for similar types of borrowing arrangements. 4 Maintenance of capital fund and its subsidiaries, which are financial institutions, are subject to various capital and regulatory requirements of the Bank of Thailand. Under these capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and its subsidiaries must satisfy specific capital guidelines that involve, among others, quantitative measures of the Bank s and its subsidiaries assets, liabilities and certain off-financial reporting items as calculated in accordance with regulatory practices. s and its subsidiaries capital amounts and classifications are also subject to qualitative judgments by the Bank of Thailand as to components, risk weightings, and other factors. These capital and regulatory requirements are subject to change, as considered necessary by the Bank of Thailand. maintains its capital fund in accordance with the Financial Institution Business Act B.E. 2551 by maintaining its capital fund as a proportion of risk weighted assets in accordance with the criteria, methodologies, and conditions prescribed by the Bank of Thailand. As announced by the BoT in its circulars dated 8 November 2012 and 8 May 2015, the Bank is required to calculate its Capital Fund in accordance with Basel III. As at 30 September 2017 and 31 December 2016, the Supervision group and the Bank s total capital funds can be categorised as follows: Basel III Supervision 30 September 31 December 2017 2016 Tier 1 capital Common Equity Tier 1 (CET1) Issued and paid-up share capital 33,992 33,992 Premium on share capital 11,124 11,124 Legal reserve 7,000 7,000 Net gain after appropriations 265,905 236,110 Disclosed reserves Other comprehensive income 20,546 16,709 Other owner changes items (2,364) (2,364) Capital deduction items on CET1 (11,220) (8,005) Total Tier 1 capital 324,983 294,566 Tier 2 capital Subordinated debt 20,000 36,000 Allowance for classified assets of normal category 22,230 21,752 Total Tier 2 capital 42,230 57,752 Total capital funds 367,213 352,318 Total risk weighted assets 2,022,816 1,986,927 Total capital / Total risk weighted assets (minimum 9.75% * ) 18.2% 17.7% Total Tier 1 capital / Total risk weighted assets (minimum 7.25% * ) 16.1% 14.8% Total Tier 1 common equity / Total risk weighted assets (minimum 5.75% * ) 16.1% 14.8% Total Tier 2 capital / Total risk weighted assets 2.1% 2.9% * Conservation buffer requires additional Common Equity Tier 1 of 0.625% per annum from 1 January 2016 onwards until reaching 2.50% in 2019 20

Basel III Supervision 30 September 31 December 2017 2016 Capital after deducting capital add-on arising from Single Lending Limit 366,744 351,110 Capital ratio after deducting capital add-on arising from Single Lending Limit 18.1% 17.7% Basel III 30 September 31 December 2017 2016 Tier 1 capital Common Equity Tier 1 (CET1) Issued and paid-up share capital 33,992 33,992 Premium on share capital 11,124 11,124 Legal reserve 7,000 7,000 Net gain after appropriations 242,348 218,192 Other comprehensive income 16,594 16,672 Capital deduction items on CET1 (9,318) (6,872) Total Tier 1 capital 301,740 280,108 Tier 2 capital Subordinated debt 20,000 36,000 Allowance for classified assets of normal category 21,464 21,165 Total Tier 2 capital 41,464 57,165 Total capital funds 343,204 337,273 Total risk weighted assets 1,954,927 1,933,848 Total capital / Total risk weighted assets (minimum 9.75% * ) 17.6% 17.4% Total Tier 1 capital / Total risk weighted assets (minimum 7.25% * ) 15.5% 14.5% Total Tier 1 common equity / Total risk weighted assets (minimum 5.75% * ) 15.5% 14.5% Total Tier 2 capital / Total risk weighted assets 2.1% 2.9% * Conservation buffer requires additional Common Equity Tier 1 of 0.625% per annum from 1 January 2016 onwards until reaching 2.50% in 2019 Capital after deducting capital add-on arising from Single Lending Limit 342,521 336,083 Capital ratio after deducting capital add-on arising from Single Lending Limit 17.5% 17.4% Disclosures of capital maintenance information under Bank of Thailand Notification number Sor Nor Sor 4/2556 dated 2 May 2013 on the Public Disclosures of Capital Maintenance for Commercial Banks and Bank of Thailand Notification number Sor Nor Sor 5/2556 dated 2 May 2013 on the Public Disclosures of Capital Maintenance for Financial Group, were as follows: Location of disclosure s website under Investor Relations section at http://www.scb.co.th/en/about-scb/investor-relations/financialinformation/pillar Date of disclosure Within 4 months after the period end date as indicated in the notifications Information as of 30 June 2017 21

Capital management and its subsidiaries policies are to maintain a strong capital base so as to provide a cushion against future uncertainties, engender market confidence in the Bank s robustness and to support business growth. Further, the impact of the level of capital on shareholders returns is also considered together with the need to maintain a balance between the higher returns that might be possible with higher gearing and the advantages and security afforded by a sound capital position. and its subsidiaries have complied with BoT imposed capital requirements throughout the period and, as noted in the table above, its capital level is well in excess of the minimum requirements. 5 Investments, net 5.1 Classification of investments in securities As at 30 September 2017 and 31 December 2016, the investments in securities of the Bank and its subsidiaries were classified as follows: 30 September 31 December 30 September 31 December 2017 2016 2017 2016 Fair value Fair value Fair value Fair value Trading securities Government and state enterprise securities 18,038 27,291 18,019 27,269 Corporate debt securities 119 23 119 23 Domestic equity securities 3,774 1,562 - - Total 21,931 28,876 18,138 27,292 30 September 31 December 30 September 31 December 2017 2016 2017 2016 Fair value Fair value Fair value Fair value Available-for-sale securities Government and state enterprise securities 327,706 347,394 240,599 289,548 Corporate debt securities 36,565 31,952 - - Foreign debt securities 13,438 35,752 5,076 24,372 Domestic equity securities 20,874 19,292 6,721 6,817 Foreign equity securities 2,523 4,083 1,334 1,065 Total 401,106 438,473 253,730 321,802 30 September 31 December 30 September 31 December 2017 2016 2017 2016 Cost / Cost / Cost / Cost / Amortised Amortised Amortised Amortised cost cost cost cost Held-to-maturity securities Government and state enterprise securities 117,617 120,589 10,998 12,215 Corporate debt securities - 36 428 423 Foreign debt securities 252 277 252 277 Other securities 1,300 1,300 - - Total 119,169 122,202 11,678 12,915 Less allowance for impairment - (36) - - Total 119,169 122,166 11,678 12,915 22

30 September 31 December 30 September 31 December 2017 2016 2017 2016 Cost Cost Cost Cost General investments Domestic non-marketable equity securities 1,084 934 1,079 928 Foreign non-marketable equity securities 436 319 436 319 Total 1,520 1,253 1,515 1,247 Less allowance for impairment (181) (181) (180) (180) Total 1,339 1,072 1,335 1,067 Total investments, net 543,545 590,587 284,881 363,076 5.2 Investments in companies with problems in their financial positions As at 30 September 2017, the Bank and its subsidiaries held investments in a number of securities issued by companies with problems in their financial positions and operating results. and its subsidiaries have made a provision for diminution in the value of securities equal to the amount by which the cost exceeds the market value of respective securities. The aggregate cost of these securities is Baht 59 million (31 December 2016: Baht 59 million). 6 Investments in subsidiaries and associate, net As at 30 September 2017 and 31 December 2016, the Bank and its subsidiaries had an investment in associate, net of any impairment provisions, as follows: Direct and indirect Investment value shareholding Cost method Equity method 30 31 30 31 30 31 Type of Type of September December September December September December business share 2017 2016 2017 2016 2017 2016 (%) Associate Services Supernap (Thailand) Co., Ltd. * Data center Common - 24.9-351 - 334 Less allowance for impairment - (17) - - Total investments in associate, net - 334-334 * has lost significant influence from investments in associate to general investments due to the partial disposal in 2 nd quarter of 2017, so the remaining shareholding is at 10%. Accordingly the investment is no longer classified as an associate. 23

As at 30 September 2017 and 31 December 2016, the Bank had investments in subsidiaries and associate, net of impairment provisions, as follows: Investment value Direct shareholding Cost method Type of Type of 30 September 31 December 30 September 31 December business share 2017 2016 2017 2016 (%) Subsidiaries Finance & Insurance Cambodian Commercial Bank Ltd. Banking Common 100.0 100.0 2,111 1,285 Rutchayothin Assets Management Co., Ltd. Asset management Common 100.0 100.0 25 25 SCB Securities Co., Ltd. Securities Common 100.0 100.0 2,207 2,207 SCB Asset Management Co., Ltd. Asset management Common 100.0 100.0 222 222 Siam Commercial Leasing PCL * Collection Common 99.4 99.4 1,533 1,533 SCB Life Assurance PCL Life insurance Common 99.2 99.2 12,540 12,540 Services SCB Training Centre Co., Ltd. Training center Common 100.0 100.0 390 390 Siam Phitiwat Co., Ltd. * Appraisal services Common 100.0 100.0 10 10 SCB Plus Co., Ltd. Collection Common 100.0 100.0 1 1 SCB Protect Co., Ltd. ** Non-life insurance broker Common 100.0-2 - SCB Abacus Co.,Ltd ** Data analytics Common 100.0-5 - Other Sor. Or. Kor. PCL * Commercial Common 99.7 99.7 582 582 Indirect subsidiaries Mahisorn Co., Ltd. *** Property management Common - - - - Digital Ventures Co., Ltd. **** Financial technology Common - - - - Associate Services Supernap (Thailand) Co., Ltd. ***** Data center Common - 10.0-141 Total 19,628 18,936 Less allowance for impairment (2,194) (2,194) Total investments in subsidiaries and associate, net 17,434 16,742 * The Company is under liquidation ** Newly established in 2017 *** Subsidiary of SCB Plus Co., Ltd. (100% shareholding) **** Subsidiary of SCB Securities Co., Ltd. (100% shareholding) ***** has lost significant influence from investments in associate to general investments due to the partial disposal in 2 nd quarter of 2017. Accordingly the investment is no longer classified as an associate. All subsidiaries and associate were registered and operate in Thailand except for the Cambodian Commercial Bank Ltd., which is registered and operates in Cambodia. 24

7 Loans to customers and accrued interest receivables, net 7.1 Classified by business type and quality of loan classification as at 30 September 2017 and 31 December 2016 30 September 2017 31 December 2016 Special Sub- Doubtful Special Sub- Doubtful Normal Mention Standard Doubtful Loss Total * Normal Mention Standard Doubtful Loss Total * Agriculture and mining 15,538 2,461 89 153 134 18,375 14,676 170 86 62 172 15,166 Manufacturing and commercial 555,795 15,553 5,083 5,020 20,122 601,573 558,665 16,628 8,287 3,709 18,061 605,350 Real estate and construction 144,285 2,804 1,292 812 3,057 152,250 125,456 2,201 1,543 882 2,673 132,755 Utilities and services 328,718 1,646 899 1,344 3,433 336,040 319,793 610 2,481 626 1,776 325,286 Housing loans 510,390 11,471 5,081 5,577 3,093 535,612 500,840 10,672 4,736 3,128 2,493 521,869 Others 327,325 14,819 3,551 1,871 2,149 349,715 317,525 14,219 3,541 1,300 2,037 338,622 Total * 1,882,051 48,754 15,995 14,777 31,988 1,993,565 1,836,955 44,500 20,674 9,707 27,212 1,939,048 30 September 2017 31 December 2016 Special Sub- Doubtful Special Sub- Doubtful Normal Mention Standard Doubtful Loss Total * Normal Mention Standard Doubtful Loss Total * Agriculture and mining 15,494 2,461 89 153 134 18,331 14,621 170 86 62 172 15,111 Manufacturing and commercial 553,385 15,543 5,083 5,020 20,122 599,153 556,043 16,628 8,287 3,709 18,061 602,728 Real estate and construction 144,285 2,804 1,292 812 2,076 151,269 125,456 2,201 1,543 882 1,683 131,765 Utilities and services 328,611 1,646 899 1,344 3,433 335,933 319,608 610 2,481 626 1,776 325,101 Housing loans 510,343 11,471 5,081 5,577 3,093 535,565 500,794 10,672 4,736 3,128 2,493 521,823 Others 317,847 14,806 3,551 1,871 2,091 340,166 309,699 14,219 3,541 1,300 1,978 330,737 Total * 1,869,965 48,731 15,995 14,777 30,949 1,980,417 1,826,221 44,500 20,674 9,707 26,163 1,927,265 * Net of deferred revenue, excludes accrued interest receivables 7.2 Loans to listed companies identified for delisting and the Bank 30 September 2017 31 December 2016 Loans and Loans and accrued accrued No. of interest Amount of No. of interest Amount of companies receivables * Collateral provision companies receivables * Collateral provision Listed companies identified for delisting 2 12,166 5,914 8,716 4 12,724 5,914 8,721 * Including loans to financial institutions but excluding other expenses 25